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 08 August 2007
Confident Consumers - A Fair Deal creating Prosperity & Success for All
 
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Smart Metering: Introduction of

UK Domestic Market

The Government is committed to seeking measures to achieve carbon savings of 0.2 MtC by 2010 through better metering and billing.  It believes that one way this could be achieved is if all new and replacement meters are 'smart'.

'Smart' meters could offer gas and electricity customers:

  • More accurate and less estimated bills
  • Information that could help them use less energy and encourage investment in energy efficiency
  • Lower costs through reduced peak consumption, because this would reduce the need for new network investment
  • Increased security of supply because the less energy we use, the less we need
  • More sustainable consumption through reduced carbon emissions.

Ofgem's February 2006 consultation on metering saw that more innovative metering could help tackle concerns about reducing carbon emissions, maintaining security of supply and tackling fuel poverty.

Drawing on international experience of smart metering, the consultation set pout Ofgem's initial thoughts on the benefits and costs of putting more innovative gas and electricity metering in to people's homes and invited views on the issues and policy options. Ofgem will set out the next steps in May 2006. 

Budget 2006 announced at £5 million fund to co-finance with energy suppliers a pilot study of feedback devices such as 'smart' energy meters that could potentially reduce energy demand and facilitate other market efficiencies. Further details of the study will be announced as soon as possible.

EU Directive on Energy End-Use Efficiency and Energy Services

This Directive was adopted in December 2005 and contains provisions for time of use meters to be installed on a new and replacement basis where it is cost effective to do so; this measure must be brought into UK law by 2008.The Department for Environment, Food and Rural Affairs (Defra) have the policy lead on bringing the provisions of the Directive into UK law.

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